Q&A

Questions on apartment conversions and stamp duty are answered.

Converting into a one-bed

I am considering converting my two-bedroom apartment into a large one-bedroom apartment - the second bedroom would be used to make a walk-in wardrobe and a larger bathroom. It is all being done under an architect's supervision so it is going to be a very stylish job. However, what do you think are the implications for the resale value - I don't intend to live here forever?

The plus side of your query is that you are doing the job properly with a proper design input and that will have a positive effect on any resale. However, by changing your apartment from a two-bedroom into a one-bed you are reducing the number of prospective buyers who will be interested in it and positioning it in a different price category.

Let's say you went to sell at the same time as two other apartments came up in your block - another one-bed and a two-bed. It's highly unlikely that your apartment would achieve the same selling price as the two-bedroom and the likely buyers would be those who are only interested in the other one-bedroom one. You'd certainly get a better price than the other one-bedroom but it's too difficult to tell by how much.

As you are considering resale at some point, have you considered doing less drastic work? Such as redoing the bathroom - apartment bathroom fit-outs tend to be very basic so updating yours would make a huge difference, and maybe fitting out the spare bedroom with some smart wardrobes to make it a walk-in dressing area. Buyers would then have the option of ripping the wardrobes out and they will certainly be impressed by your smart new bathroom.

Stamp duty claw-back

I bought a new apartment (first-time buyer) in Blanchardstown in September 1999 jointly with my girlfriend. We were owner-occupiers and it was our primary residence until February this year when we bought a new house in Co Meath which is now our primary residence. We still own the apartment in Blanchardstown and have not rented it out and use it occasionally. Could you please let me know what the implications would be on selling the apartment in terms of stamp duty claw-back? Also, is there some significance to selling before or after five years? We will have owned the apartment for five years in September this year.

You are right in thinking that five years is a significant period of time for you. A claw-back system was put in place by the Revenue to stop people buying a house as an owner-occupier and then, a short time later, renting it out and so avoiding paying stamp duty. The general rule is that there is a stamp duty claw-back if you convert your primary residence - in your case the Blanchardstown apartment - to a rental within the first five years of owning it. However it looks like your bill is going to be a relatively modest one as the amount is based on how long the property was a rental - in your case only eight months. If you are using an accountant to help you file your tax returns - a good idea given your new role as a property investor - ask their advice.

Send your queries to Property Questions, The Irish Times, 10-16 D'Olier Street, Dublin 2 or e-mail propertyquestions@irish-times.ie.

Unfortunately, it is not possible to respond to all questions. The above is a representative sample of queries received. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.